India's largest airline, IndiGo, is under scrutiny from the Competition Commission of India (CCI) following a period of major operational disruption that has resulted in thousands of flight cancellations and stranded passengers. The CCI is considering launching an antitrust investigation to determine if IndiGo has violated competition laws, specifically regarding the misuse of its dominant market position to impose unfair conditions on travelers or limit services.
Basis for the Investigation
The potential investigation stems from a series of events in December 2025, where IndiGo cancelled over 5,000 flights, leaving passengers stranded at airports across the country. This disruption was attributed to a crew shortage, allegedly caused by the airline's failure to adequately implement revised pilot rest regulations. Pilot unions have also alleged that the chaos was "artificially created" to resist the implementation of these revised Flight Duty Time Limitations (FDTL) rules. The Directorate General of Civil Aviation (DGCA) has already issued directives to IndiGo, including a reduction of flights from its winter schedule, initially by 5% and subsequently increased to 10%.
CCI's Concerns and Legal Framework
The CCI's potential probe will focus on whether IndiGo abused its dominant position in the market, which constitutes approximately 65% of India's domestic aviation sector. Section 4 of the Competition Act prohibits dominant companies from exploiting their position by imposing unfair or discriminatory conditions on consumers, limiting services, or engaging in restrictive practices. The CCI can initiate an inquiry based on complaints, information from stakeholders, or references from the government. If the CCI finds preliminary evidence of anti-competitive behavior, it can order a full-scale investigation.
IndiGo's Response and DGCA's Involvement
The DGCA has issued a show-cause notice to IndiGo's CEO, Pieter Elbers, and COO, Isidre Porqueras, requesting a response regarding the flight cancellations. IndiGo has requested additional time to respond, citing the complexity of its operations. Civil Aviation Minister K Rammohan Naidu has indicated that the government may consider removing IndiGo's CEO if necessary. The DGCA is conducting a broader inquiry into IndiGo's operational crisis.
Potential Consequences and Previous CCI Scrutiny
If the CCI finds evidence of anti-competitive practices, it can impose penalties and direct the airline to cease such practices. IndiGo has faced CCI scrutiny in the past. However, two previous cases against the airline, one concerning unfair passenger conditions (2015) and another involving predatory recruitment practices (2016) filed by Air India, were dismissed.
The coming weeks will be critical for IndiGo as it faces scrutiny from both aviation and competition regulators. The airline must demonstrate its ability to stabilize operations and ensure passenger rights are protected to avoid further regulatory repercussions.
